In its policy statement, Ending Child Poverty, which I launched recently, the Combat Poverty Agency makes recommendations in a number of areas, including the tapered withdrawal of means tested payments and the consideration of delivery mechanisms through the tax system to improve benefit take up.
As I said at its launch, this statement, based on an analysis of income support packages for families in 22 industrialised countries, is a comprehensive, wide-ranging and valuable contribution to the ongoing drive to ending child poverty.
Over the years a number of improvements have been introduced across the social welfare system to make them more employment friendly by removing disincentives associated with loss of benefits on taking up employment. Some current examples are: the one parent family payment — the first €146.50 weekly earnings plus 50% of earnings from €146.51 to €293 are disregarded; unemployment assistance — 40% of net earnings from part-time work are disregarded; farm assist — 30% of earnings from self-employment are disregarded; family income supplement — 40% of net earnings are disregarded; retention of rent-mortgage interest supplement and other secondary benefits on a tapered basis in certain circumstances; and tapered withdrawal of adult and child dependant increases as the spouse-partner's earnings from employment increase.
In the interests of improving take-up, the agency proposes the examination of delivery mechanisms that employ the taxation system as well as the social welfare benefits system. Payment of FIS through the tax system has been considered in this context by a working group including the social partners, the remit of which was to examine the role which refundable tax credits could play in the tax and welfare system.
While the report of the group is awaited, I expect that it will recommend that FIS will continue to be paid by my Department, with a modified system of delivery and sustained efforts to improve take up.
My Department will continue to explore ways in which payment mechanisms can be improved and public awareness of entitlement increased.
The question of further improvements in benefit withdrawal arrangements will be a matter for consideration in a budgetary context and in the context of priorities generally.